Swot Analysis of "Global Introduction of the "New" Pantene Shampoo: Success in Taiwan" written by John R. Kennedy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pantene Shampoo facing as an external strategic factors. Some of the topics covered in Global Introduction of the "New" Pantene Shampoo: Success in Taiwan case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Global Introduction of the "New" Pantene Shampoo: Success in Taiwan casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, geopolitical disruptions, increasing transportation and logistics costs, increasing household debt because of falling income levels, technology disruption,
there is increasing trade war between United States & China, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Global Introduction of the "New" Pantene Shampoo: Success in Taiwan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Global Introduction of the "New" Pantene Shampoo: Success in Taiwan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pantene Shampoo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pantene Shampoo operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Global Introduction of the "New" Pantene Shampoo: Success in Taiwan can be done for the following purposes –
1. Strategic planning using facts provided in Global Introduction of the "New" Pantene Shampoo: Success in Taiwan case study
2. Improving business portfolio management of Pantene Shampoo
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pantene Shampoo
Strengths Global Introduction of the "New" Pantene Shampoo: Success in Taiwan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pantene Shampoo in Global Introduction of the "New" Pantene Shampoo: Success in Taiwan Harvard Business Review case study are -
Analytics focus
– Pantene Shampoo is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by John R. Kennedy can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High switching costs
– The high switching costs that Pantene Shampoo has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Sustainable margins compare to other players in Global Business industry
– Global Introduction of the "New" Pantene Shampoo: Success in Taiwan firm has clearly differentiated products in the market place. This has enabled Pantene Shampoo to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Pantene Shampoo to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Pantene Shampoo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pantene Shampoo has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to recruit top talent
– Pantene Shampoo is one of the leading recruiters in the industry. Managers in the Global Introduction of the "New" Pantene Shampoo: Success in Taiwan are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Pantene Shampoo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Global Introduction of the "New" Pantene Shampoo: Success in Taiwan Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Pantene Shampoo has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Global Introduction of the "New" Pantene Shampoo: Success in Taiwan HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Global Business field
– Pantene Shampoo is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Pantene Shampoo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Pantene Shampoo are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Pantene Shampoo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Global Introduction of the "New" Pantene Shampoo: Success in Taiwan Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Pantene Shampoo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pantene Shampoo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Global Introduction of the "New" Pantene Shampoo: Success in Taiwan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Global Introduction of the "New" Pantene Shampoo: Success in Taiwan are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Global Introduction of the "New" Pantene Shampoo: Success in Taiwan HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Pantene Shampoo has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Pantene Shampoo needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
No frontier risks strategy
– After analyzing the HBR case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring
– The stress on hiring functional specialists at Pantene Shampoo has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan, in the dynamic environment Pantene Shampoo has struggled to respond to the nimble upstart competition. Pantene Shampoo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Global Introduction of the "New" Pantene Shampoo: Success in Taiwan HBR case study mentions - Pantene Shampoo takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pantene Shampoo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Pantene Shampoo, firm in the HBR case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Pantene Shampoo supply chain. Even after few cautionary changes mentioned in the HBR case study - Global Introduction of the "New" Pantene Shampoo: Success in Taiwan, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pantene Shampoo vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Pantene Shampoo has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Global Introduction of the "New" Pantene Shampoo: Success in Taiwan should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Pantene Shampoo is dominated by functional specialists. It is not different from other players in the Global Business segment. Pantene Shampoo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pantene Shampoo to focus more on services rather than just following the product oriented approach.
Opportunities Global Introduction of the "New" Pantene Shampoo: Success in Taiwan | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pantene Shampoo is facing challenges because of the dominance of functional experts in the organization. Global Introduction of the "New" Pantene Shampoo: Success in Taiwan case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Pantene Shampoo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Pantene Shampoo can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pantene Shampoo can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Pantene Shampoo can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Pantene Shampoo to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pantene Shampoo can use these opportunities to build new business models that can help the communities that Pantene Shampoo operates in. Secondly it can use opportunities from government spending in Global Business sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Pantene Shampoo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pantene Shampoo in the consumer business. Now Pantene Shampoo can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Pantene Shampoo can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pantene Shampoo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Pantene Shampoo to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Pantene Shampoo to increase its market reach. Pantene Shampoo will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Pantene Shampoo can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Global Introduction of the "New" Pantene Shampoo: Success in Taiwan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Regulatory challenges
– Pantene Shampoo needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Increasing wage structure of Pantene Shampoo
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Pantene Shampoo.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Pantene Shampoo needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Pantene Shampoo.
High dependence on third party suppliers
– Pantene Shampoo high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology acceleration in Forth Industrial Revolution
– Pantene Shampoo has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Pantene Shampoo needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pantene Shampoo can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan .
Consumer confidence and its impact on Pantene Shampoo demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Stagnating economy with rate increase
– Pantene Shampoo can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pantene Shampoo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan, Pantene Shampoo may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Pantene Shampoo in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Global Introduction of the "New" Pantene Shampoo: Success in Taiwan Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Global Introduction of the "New" Pantene Shampoo: Success in Taiwan is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Global Introduction of the "New" Pantene Shampoo: Success in Taiwan is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Pantene Shampoo needs to make to build a sustainable competitive advantage.
